Why did XOM's Q2 2024 earnings beat forecasts?

Exxon Mobil's Q2 2024 earnings exceeded forecasts due to higher production and cost management:

1. **Higher Production**: Exxon Mobil's upstream segment reported quarterly earnings of $7.1 billion, up from $4.6 billion in the year-earlier quarter. This increase was primarily driven by growth in production from the Pioneer acquisition, volume growth from the offshore Guyana resources, and the Permian basin in Texas. The company's production averaged 4,358 thousand barrels of oil equivalent per day (MBoe/d), higher than 3,608 MBoe/d reported in the prior-year quarter. Liquids production also increased to 2,984 thousand barrels per day (MBbls/d) from 2,353 MBbls/d in the prior-year quarter.
2. **Cost Saving Initiatives**: The increase in upstream earnings was supported by cost saving initiatives. These initiatives likely helped to offset the impact of lower oil and gas prices, resulting in better-than-expected profitability.
3. **Divestment Gains**: The company reported gains from divestment, which contributed to the improvement in earnings. Divestment gains can provide a boost to earnings, especially when combined with higher production volumes.

In summary, Exxon Mobil's Q2 2024 earnings beat forecasts due to higher production, cost management initiatives, and divestment gains. These factors collectively contributed to the company's strong financial performance for the quarter.